Section 1. K.S.A. 1997 Supp. 74-50,151 is
hereby amended to read
as follows: 74-50,151. (a) There is hereby created in the state
treasury the
Kansas economic opportunity initiatives fund. Subject to acts of
the leg-
islature applicable thereto, the moneys in the Kansas economic
oppor-
tunity initiatives fund shall be used only for the purposes
prescribed by
this section.

(b) All expenditures made pursuant to this act
shall be made in ac-
cordance with appropriations acts upon warrants of the director of
ac-
counts and reports issued pursuant to vouchers approved by the
governor
or the governor's designee. The governor may approve a warrant
upon
certification, by the secretary of commerce and housing, that an
economic
emergency or unique opportunity exists which warrant funding for a
stra-
tegic economic intervention by such state agency or agencies to
address
expenses involved in securing economic benefits or avoiding or
remedying
economic losses related to:

(1) A major expansion of an existing Kansas
commercial enterprise;

(2) the potential location in Kansas of the
operations of a major em-
ployer;

(3) the award of a significant federal or
private sector grant which has
a financial matching requirement;

(4) the departure from Kansas or the substantial
reduction of the
operations of a major employer; and

(5) the closure of a major federal or state
institution or facility.

(c) An intervention strategy may include
financial assistance in the
form of grants, loans or both. The department of commerce and
housing
shall adopt written guidelines concerning the terms and conditions
of any
such loans. However, all repaid funds shall be credited to the
Kansas
economic opportunity initiatives fund. No intervention strategy
approved
pursuant to this act shall facilitate the moving of an existing
Kansas firm
to another location within the state unless such restriction is
waived by
the secretary of commerce and housing. Every intervention strategy
ap-
proved pursuant to this act shall identify the intended outcomes to
be
realized by the strategy for which funding is sought.

(d) The department of commerce and housing and
Kansas, Inc. shall
make joint findings concerning the costs and benefits, on both a
local and
statewide basis, of projects proposed pursuant to this act. Prior
to allo-
cation of any funds pursuant to this act, the governor shall review
the
cost-benefit findings performed on each project.

(e) The director of the budget and the director
of the legislative re-
search department shall consult periodically and review the balance
cred-
ited to and the estimated receipts to be credited to the state
economic
development initiatives fund during the fiscal year. During any
period
when the legislature is not in session, upon a finding by the
director of
the budget in consultation with the director of the legislative
research
department that the total of the unencumbered balance and
estimated
receipts to be credited to the state economic development
initiatives fund
during a fiscal year are insufficient to fund the budgeted
expenditures
and transfers from the state economic development initiatives fund
for
the fiscal year in accordance with the provisions of appropriation
acts, the
director of the budget shall make a certification of such finding
to the
governor. Upon approval by the governor, the director of accounts
and
reports shall transfer the amount of moneys from the Kansas
economic
opportunity initiatives fund to the state economic development
initiatives
fund that is required, in accordance with a certification by the
director
of the budget under this subsection, to fund the budgeted
expenditures
and transfers from the state economic development initiatives fund
for
the fiscal year in accordance with the provisions of appropriation
acts, as
specified by the director of the budget pursuant to such
certification.

(f) On or before the 10th day of each month, the
director of accounts
and reports shall transfer from the state general fund to the state
eco-
nomic development initiatives fund the amount of money
certified by thepooled money investment board in accordance with this
section. Prior tothe 10th day of each month, the pooled money investment
board shallcertify to the director of accounts and reports the amount
of money equalto the proportionate amount of all the interest credited to
the state gen-eral fund for the preceding month, pursuant to K.S.A.
75-4210a andamendments thereto, that is attributable to moneys in the
Kansas eco-nomic opportunity initiatives fund. Such amount of money
shall be de-termined by the pooled money investment boardinterest earnings based
on:

(1) The average daily balance of moneys in the
Kansas economic op-
portunity initiatives fund during the preceding month as
certified to theboard by the director of accounts and reportsfor the preceding month;
and

(2) the average interest rate on
repurchase agreements of less than30 days duration entered into by the pooled money
investment board forthat period of time. On or before the fifth day of each
month, the directorof accounts and reports shall certify to the pooled money
investmentboard the average daily balance of moneys in the Kansas
economic op-portunity initiatives fund duringthe net
earnings rate for the pooledmoney investment portfolio for the preceding month.

(g) A five member panel consisting of the
secretary of commerce and
housing, the president of Kansas, Inc., the president of the Kansas
tech-
nology enterprise corporation, the private sector chairperson of
the board
of Kansas, Inc. and the private sector chairperson of the Kansas
technol-
ogy enterprise corporation shall review annually the propriety of
projects
funded under this section. The panel shall report its findings to
the gov-
ernor.